Posted: 28 Sep 2015 09:00 PM PDT
Are we about to witness the most important global financial event since
the collapse of Lehman Brothers in 2008? Glencore has been known as the
largest commodities trading company on the entire planet, and at one
time it was ranked as the 10th biggest company in the world. It is
linked to trillions of dollars of derivatives trades globally, and if
the firm were to implode it would be a financial disaster unlike
anything that we have seen in Europe since the end of World War II.
Unfortunately, all signs are pointing to an inescapable death spiral for
Glencore at this point. The stock price was down nearly 30 percent on
Monday, and overall Glencore stock has plunged nearly 80 percent since
May. There are certainly other candidates for "the next Lehman"
(Petrobras and Deutsche Bank being two perfect examples), but Glencore
has definitely surged to the front of the pack. Right now many analysts
are openly wondering if the firm will even be able to survive to the end
of next month.
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